China Rongsheng halts trading, cites possible deal announcement

SHANGHAI, March 11 (Reuters) - China Rongsheng Heavy
Industries Group Holdings halted trading in its shares
on Wednesday, citing a pending announcement on a "possible very
substantial disposal".

On Tuesday, private Chinese shipbuilder Yangzijiang
Shipbuilding Holdings said government agencies had
approached it to buy a stake in Rongsheng and that it had yet to
make a decision.

Shares in Rongsheng edged up to their highest level since
Feb. 26 on the news, having halved in price since October.

Rongsheng, one of China's largest private shipbuilders, has
been struggling with a heavy debt burden and a slowdown in the
shipbuilding market. It said in October than the government was
helping it look for external financial support.

Saving Rongsheng has become a test for China's government,
which has made reforming bloated industries one of its goals.
Thousands of workers were laid off at the company's yard in
east China's Jiangsu province in 2013, where Brazilian miner
Vale SA's mega iron-ore carriers are being built.
(Reporting by Brenda Goh; Editing by Miral Fahmy)